Thomas Edison State University Establishes Proactive Framework to Combat Rising Higher Education Fraud

As fraud in higher education grows increasingly sophisticated, colleges and universities nationwide are confronting a rapidly evolving threat landscape that traditional systems are not equipped to manage. Thomas Edison State University (TESU) is addressing this challenge head on.

From fraudulent applications to financial aid exploitation, institutions are being challenged not only to detect and prevent fraud, but also to fundamentally rethink how and where those protections are embedded. TESU is developing and implementing a comprehensive, proactive framework that integrates identity verification into the student experience from the outset, rather than treating fraud detection as a reactive, back-end function.

“As the higher-education landscape becomes more digital, the risks become more complex,” said Christine Carter, senior director, CRM Strategy. “We are seeing an unprecedented level of fraud tied to financial aid, and there is no single solution or oversight mechanism that fully addresses it. Institutions must continuously adapt.”

“A university’s responsibility is not only to provide access to education, but also to protect the integrity of the academic experience for every student we serve,” said Merodie A. Hancock, president of TESU. “As technology evolves, institutions must be equally innovative and proactive in safeguarding students, financial aid systems and public trust.”

A pioneer in adult distance education and degree completion, TESU serves a predominantly online student population — making secure, reliable identity verification critical. The University began identifying patterns of concern, including irregularities in application data, repeated use of AI-generated content and suspicious financial-aid activity. Recognizing the scale and urgency of the issue, TESU convened cross-functional teams to assess the problem and define a path forward.

Rather than implementing isolated fixes, TESU focused on building a sustainable, institution-wide approach. Central to that effort was the decision to standardize identity verification as a universal step within the application process for all students.

“We knew early on that a piecemeal approach wouldn’t work,” Carter said. “Our goal was to create a consistent, front-end process that ensures every applicant is verified, while maintaining a seamless and accessible experience for students.”

The University mapped its internal processes, aligned stakeholders and implemented a solution designed to integrate directly into its admissions workflow. By prioritizing planning and collaboration upfront, TESU was able to deploy the new framework efficiently while minimizing disruption to staff and students.

Equally important was TESU’s operational strategy. The University redistributed workload across teams and introduced additional support resources to ensure that the transition did not overburden staff. This approach has enabled TESU to maintain service levels while simultaneously strengthening its defenses.

TESU’s efforts reflect a broader shift occurring across higher education, where institutions are moving from reactive fraud detection to proactive prevention. The growing sophistication of bad actors — particularly with the use of artificial intelligence — has created what many describe as an “arms race,” requiring equally advanced and adaptive responses.

“Fraud is no longer something institutions can address after the fact,” Carter noted. “It has to be built into the process from the beginning and continuously refined as new threats emerge.”

The University recently shared its experience with peer institutions at industry conferences, offering practical insights into implementation, change management and cross-departmental coordination. The response underscored the widespread nature of the challenge and the need for scalable solutions.

“Every institution is at a different stage, but the concern is universal,” Carter said. “By taking ownership of this process and embedding it into our operations, we’ve created a model that others can adapt based on their own needs.”

As higher education continues to navigate an increasingly complex digital environment, TESU’s approach demonstrates how institutions can lead with innovation, collaboration and a commitment to protecting both students and institutional integrity.